Renting is on the rise. A Harvard University Joint Center for Housing Studies report said 1.4 million new renter households were formed in 2015, pushing the percentage of U.S. households that rent to 36.4%. That is the highest level since the 1960s, and the trend is so pervasive that even wealthy Americans increasingly prefer home and apartment rentals to homeownership. Despite its growing popularity, renting still is not dominant in most U.S. cities. According to a recent Abodo study, there are over 400 urban areas in the U.S. with populations exceeding 100,000, but only 21 contain at least 50% renters (see map below). From major cities like New York City and San Francisco to smaller college towns, here are four key markets where renting has outpaced homeownership in the U.S.

This is why I laugh at people who think high prices are a "bubble." Rental demand is high and supply is low and expected to be low indefinitely. The fundamentals all line up for massive price appreciations.